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100 Percent Home Loans
Benefits of 100% VA Home Mortgage Loans
How does no money down sound? Veterans Administration (VA) mortgage loans are becoming very popular mainly because of the lack of no down payment mortgages available with conventional loans. Home buyers are facing the reality that qualifying for home loans is becoming more difficult. This specific government mortgage loan program offers military home buyers and veteran a new cost-effective home financing option. No money down loans are considered 100% home loan financing, because no down-payment is needed with the VA loan guarantee. Getting a zero down home loan at a low interest rate is our goal with this program.
No Money Down Home Loans with Premium VA Rates
The Department of Veteran Affairs, through the VA direct home loan program supplies home financing to eligible veterans in areas where private financing is not generally available and helps veterans purchase properties with no down payment. A VA-guaranteed loan is a loan made by private lenders (such as banks, savings & loans, or mortgage companies) to eligible veterans. The VA does not provide any lending services, but they do guarantee that the qualified vets repay of the loan or they will pay the insurance portion of the mortgage that poses the most significant risk for mortgage lenders. Because of the government guarantee reduces the risk of payment default. VA mortgage rates are available to qualified military vets starting at 4.625%. Buying a home with no deposit or down-payment can be challenging but our VA lenders have simplified the process for military applicants.
The federal government recently improved the VA loan program, making it even more attractive to the nation's veterans. The government has made improvements to the VA's Adjustable Rate Mortgage (ARM) program. And, the VA loan limit has been raised to $417,000 for most areas. The loan limits in the states of HI, CA and AK was increased to the maximum Fannie Mae and Freddie Mac limit for those states, $539,475.
- No down payment required unless the lender requires it or the purchase price is greater than the value of the property. In addition, the seller is allowed to pay most, if not all, of the closing costs and prepaid items. This means little to no cash out of pocket for the veteran.
- Interest rates are negotiable and often more attractive than other 100% financing options.
- It is easier to qualify for a VA loan compared to a conventional loan. The lending requirements are nowhere near as strict.
- No prepayment penalties.
- Since there is a government guarantee to the mortgage lender provided by the VA, the VA loan allows veterans 100% financing without private mortgage insurance (PMI) or 20% second mortgage. A VA funding fee of 0 to 3.3% of the loan amount is paid to the VA and is allowed to be financed. However, if you have at least a 10% service-connected disability, you are exempt from the funding fee. Just bring your VA award letter to prove your disability.